XBT/USD Analysis: Bitcoin Price Breakout Lingers, $8k Is The Bull’s Eye – BitMEX Margin Trading

By John Isige
Published December 6, 2019 Updated December 6, 2019
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XBT/USD Analysis: Bitcoin Price Breakout Lingers, $8k Is The Bull’s Eye – BitMEX Margin Trading

By John Isige
Published December 6, 2019 Updated December 6, 2019
  • Bitcoin recovers above $7,400 after strongly defending $7,000 key support.
  • XBT/USD is nurturing a possible triangle breakout targeting $8,000.

Bitcoin is relatively bullish ahead of the weekend trading session. The shallow recovery follows several days of struggling to defend $7,000 and sustain gains above $7,200. XBT/USD surged briefly on Thursday breaking past the crucial resistance at $7,400. However, the psychological $7,500 resistance was tested but not broken.

In the meantime, Bitcoin is trading at $7,396 above the Exponential Moving Averages (EMA). The EMA 50 on the 1-hour chart is crossing above the EMA 100 in a reflection of the improving technical picture. Besides, the Relative Strength Index (RSI) is back above the average and holding ground at 56. The RSI has brushed shoulders with the oversold twice in December; on Dec 1 and Dec 4.

XBT/USD 1-hour chart

XBT/USD price chart
XBT/USD price chart by Tradingview

As long as the price stays above the moving averages supported by the increasing bullish volume, Bitcoin is likely to trend above $7,400 and push past the next hurdle at $7,500. Moreover, the formation of a symmetrical triangle suggests that a breakout could catapult Bitcoin above $8,000.

As far as support areas are concerned, Bitcoin is initially supported by the 61.8% Fibonacci retracement level with the last swing high at $7,877 to as swing low of $6,525. Both the EMA 50 and the EMA 100 will provide support in addition to the 50% Fibo at $7,200, $7,000 and $6,800.

XBT/USD Technical Levels

BitMEX index price: $7,411

Volume: $2.2 billion

Open interest: $643 million

Trend: Bullish

RSI: Moving upwards in a reflection of the recovering BTC price.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1164 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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